Introduction
Can we consider hydrogen a renewable energy source? This question becomes more important as experts predict the global green hydrogen market will reach USD 6.49 billion by 2024. This is a big deal as it means that the market will grow 31% every year through 2032.
The United States produces mostly “gray hydrogen” – about 95% comes from fossil fuels and leaves a massive carbon footprint. But green hydrogen provides a truly renewable option through electrolysis that wind or solar energy powers. Many countries now see hydrogen’s potential as a renewable energy source that can store massive amounts of energy for long periods. The European Union wants to produce 10 million tonnes of renewable hydrogen by 2030.
Governments worldwide have stepped up their support for this emerging technology as we approach 2025. The Biden administration started a mission to create seven hydrogen hubs across the U.S. with a $7 billion investment. These hubs should cut carbon emissions equal to taking 5.5 million gasoline-powered cars off the roads. This piece explores what makes hydrogen renewable, its working principles, real-life applications, and the roadblocks it faces to become a mainstream energy solution.
What is Hydrogen Renewable Energy?
“In 2025, the U.S. hydrogen market will focus heavily on blue hydrogen, with over 1.5 million tons per annum (Mtpa) of capacity reaching the final investment decision (FID).” — Wood Mackenzie, Global research and consultancy group specializing in energy
Hydrogen stands as the most abundant element in the universe and works as a versatile energy carrier rather than an energy source. This difference is vital to evaluate whether hydrogen qualifies as renewable energy.
How hydrogen is produced
Several methods produce hydrogen, each carrying different environmental implications. The world currently gets about 95% of its hydrogen from fossil fuels. Steam methane reforming (SMR) of natural gas or coal gasification are the main production methods. Water electrolysis splits H2O into hydrogen and oxygen with electricity. Scientists have developed other methods that include solar thermochemical hydrogen production, photobiological processes, and microbial biomass conversion.
The difference between green, blue, and gray hydrogen
The hydrogen “color” system shows how it’s made and what it does to the environment:
- Gray hydrogen: Natural gas or coal production without capturing emissions creates 10 kg CO2 for each kg of hydrogen. This type makes up almost all commercial hydrogen in the United States.
- Blue hydrogen: The process matches gray hydrogen but employs carbon capture and storage (CCS) technology. This results in 3.5-4 kg CO2 per kg of hydrogen. It’s cleaner than gray hydrogen but still needs fossil fuels.
- Green hydrogen: Renewable energy sources like solar, wind, or hydropower drive the electrolysis process. It creates zero carbon emissions and needs just 10 liters of deionized water per kg compared to blue hydrogen’s 25 liters.
Is hydrogen considered renewable energy?
Hydrogen’s renewable status depends on its production source. Green hydrogen comes from renewable electricity and counts as renewable energy with zero carbon emissions. Gray and blue hydrogen come from fossil fuels and don’t make the renewable cut, even though blue hydrogen produces fewer emissions.
Green hydrogen makes up less than 1% of total production, but its future looks promising. The International Energy Agency projects a need for 530 Mt of green hydrogen to hit net-zero by 2050. This especially matters for industries that struggle to cut carbon, like steel manufacturing and long-distance transport.
How Green Hydrogen Works in Practice
Green hydrogen production turns renewable electricity into a versatile energy carrier. The process chain starts with generation and ends with utilization.
Electrolysis and renewable electricity
Electrolysis is at the heart of green hydrogen production. It splits water molecules into hydrogen and oxygen by using electricity. An electrolyzer does this job by running an electric current from renewable sources like wind, solar, or hydropower through water. You’ll find two main types of modern electrolyzers. Alkaline electrolyzers use a liquid solution, while Proton Exchange Membrane (PEM) electrolyzers use a solid polymer electrolyte. PEM systems work great with changing renewable energy inputs because they can adjust faster. The process needs about 50 kWh of energy and nine liters of water to make one kilogram of hydrogen.
Storage and transportation methods
Storing and moving hydrogen needs to be done right. You can store it as compressed gas at 350-700 bar or as a cryogenic liquid at -252.8°C. Large-scale, long-term storage options include underground salt caverns, depleted aquifers, or old oil and gas fields. Moving hydrogen happens through special pipelines, trucks, or ships based on distance and quantity. Pipelines are the cheapest option for distances up to 5000 km with steady demand. Trucks offer more flexibility in areas where demand is still growing. The storage and transport method you choose affects system efficiency and cost by a lot.
Use in fuel cells and power generation
Fuel cells take hydrogen’s chemical energy and turn it directly into electricity. They work by using a catalyst at the anode to split hydrogen molecules into protons and electrons. The electrons create electricity by flowing through an external circuit. The protons move through an electrolyte and meet up with oxygen and electrons at the cathode. This process only creates water and heat. Fuel cells are a big deal as it means that they can run at over 60% efficiency, which beats combustion engines. These cells work well in transportation, industrial facilities, and help balance power grids. Green hydrogen helps store renewable energy and makes power grids more stable. It’s also great at integrating different renewable energy sources.
Where Hydrogen is Being Used Today
Hydrogen continues to expand faster beyond its traditional uses in different sectors worldwide. This versatile energy carrier adapts well to our changing world.
Transportation and mobility
The transportation sector generates 29% of greenhouse gas emissions and now sees hydrogen as a clean alternative. Today, the United States has over 12,000 hydrogen fuel cell vehicles and almost 70 buses on its roads, supported by about 50 hydrogen fueling stations. These vehicles shine in long-distance travel. A kilogram of hydrogen powers a vehicle for about 60 miles, while a gallon of gasoline only manages 25 miles. This technology works especially well with heavy-duty transportation where batteries might fall short. To name just one example, California’s AC Transit now runs 36 hydrogen fuel cell buses that have cut CO2 emissions by over 12,800 metric tons.
Industrial applications
Global industry consumes most of the world’s hydrogen. Ammonia production takes up 55% of worldwide hydrogen usage, mostly in fertilizer manufacturing. UK refineries produce over 100,000 tons yearly and use hydrogen extensively in desulfurization and hydrocracking operations. On top of that, it plays key roles in metalworking, electronics manufacturing, and food production—where it helps turn vegetable oils into margarine and butter. Steel manufacturing now sees hydrogen as a game-changer through direct reduction of iron. Stegra in Sweden leads this change by building the world’s first large-scale hydrogen-based facility.
Energy storage and grid balancing
Hydrogen energy storage stands out because it can hold large amounts of energy for long periods. Unlike batteries that lose charge over time, hydrogen works well for seasonal storage. The system captures “curtailed” electricity—extra renewable energy that would otherwise go to waste. Electrolyzers convert excess power into hydrogen at off-peak times, store it, and turn it back into electricity when people just need more power.
Residential and commercial heating
Natural gas heats nearly 85% of UK homes and about 40% of US homes. Hydrogen offers a clean alternative that produces only water when burned. Current trials mix hydrogen with natural gas—a 20% blend by 2027 could match the carbon savings of taking two million cars off the road. The technology reaches beyond homes. Commercial buildings, industrial facilities, and agricultural operations like greenhouses now use hydrogen heating systems.
Challenges Facing Green Hydrogen in 2025
Green hydrogen shows promise, but several big hurdles stand in its way to widespread adoption in 2025. These roadblocks include economic barriers and infrastructure gaps that need solutions before hydrogen can become a viable renewable energy source.
High production costs
Green hydrogen costs $4-12 per kilogram, which is much higher than gray hydrogen at $1-3 per kilogram. The price gap exists because electricity makes up about 80% of what it costs to produce. The electrolyzer remains the most expensive part, and we need affordable ways to reduce these costs. The good news is that production costs should drop by half by 2030, reaching €1/kilogram in the best locations by 2050. Some parts of Europe with fewer renewable resources might see costs above €2/kilogram, so they might need to import.
Infrastructure limitations
Hydrogen’s unique properties mean we need new engineering solutions to build infrastructure. The system needs special compressors and large storage containers that can handle hydrogen at pressures over 700 bar. Building production facilities, storage systems, and distribution networks takes huge investments and teamwork between different groups. Safety is a big concern because hydrogen can leak and catch fire easily, which drives up maintenance costs. The technology isn’t ready for big deployments yet because electrolyzers aren’t efficient enough and aren’t made in large numbers.
Policy and regulatory uncertainty
The U.S. lacks clear regulations for hydrogen. The industry still waits for final rules about hydrogen tax credits from the Inflation Reduction Act and global standards to measure emissions. While 30 jurisdictions have created national hydrogen strategies, different approaches to subsidies and regulations create confusion. Clear definitions of “green hydrogen” are vital for tax credit eligibility. The industry needs transparent, long-term rules to move forward.
Public perception and awareness
Most people don’t know how hydrogen is produced. Many mix up regular “hydrogen fuel” with eco-friendly “green hydrogen”. People worry about hydrogen’s safety because it can catch fire, but experts don’t see these concerns as deal-breakers. Public support scores 3.9 out of five for green hydrogen, drops to 3.2 for blue hydrogen, and falls to 2.3 for gray hydrogen when people learn about production methods. Better public education through reliable sources will help drive adoption.
Conclusion
Green hydrogen is a vital part of our energy landscape in 2025. In this piece, we got into how hydrogen becomes renewable only when clean energy powers its production. Green hydrogen provides a true renewable alternative to gray hydrogen that dominates the market today.
The difference between hydrogen types makes a big impact. Gray hydrogen is nowhere near environmentally friendly and leaves a substantial carbon footprint. Blue hydrogen cuts emissions through carbon capture but depends on fossil fuels. Green hydrogen stands out as the only renewable option. Clean energy sources like wind and solar power its production through electrolysis.
Hydrogen’s applications keep growing in many sectors. It powers fuel cell vehicles, drives industrial processes, stores extra renewable energy, and heats homes. The technology shows incredible versatility. The transport sector benefits especially when you have heavy-duty applications where batteries don’t measure up.
In spite of that, green hydrogen faces roadblocks to mainstream adoption. Production costs make it substantially more expensive than fossil fuel versions. On top of that, limited infrastructure, unclear regulations, and low public awareness create major barriers to widespread use.
The future looks bright even with these challenges. Production costs should drop by half by 2030, which will make green hydrogen more competitive. The Biden administration’s $7 billion investment in hydrogen hubs will without doubt speed up development and adoption.
Hydrogen’s renewable status needs context. It works as an energy carrier – its renewable nature depends on how we make it. The fundamental change from gray to green hydrogen production will determine if hydrogen becomes the life-blood of our renewable energy future as we move toward 2025 and beyond.
